Stress-related absences rise as AI changes begin to reshape workplaces

Employee stress is building as companies reorganise their workforces in the AI era.

AHRI chief executive Sarah McCann-Bartlett says technological change is contributing to a rise in employee stress.

Employee stress has become a significant driver of unscheduled absences from work, as companies reorganise their workforce and adopt artificial intelligence and automation, a national survey of managers says.

The Australian Human Resources Institute survey of 600 senior business decision-makers and human resources professionals found the proportion of employers citing stress as a factor for employee absence rose from 42 per cent in 2023 to 57 per cent this year.

Home responsibilities (72 per cent) and minor illnesses such as cold and flu (67 per cent) were cited as the most common reasons for unscheduled absence, while the mean rate of six days off work a year was consistent with the two previous years.

Job demands, poor workplace relationships and remote or isolated work are among the most common factors contributing to employee stress, according to previous AHRI research.

Institute chief executive Sarah McCann-Bartlett said the increase in stress-related absence might be connected to the impact of employers seeking to simultaneously manage recruitment, retention, reskilling, reorganisation and redundancy.

“Many employers also point to technological change as a factor, with the majority (60 per cent) agreeing that AI is increasing work intensity for employees,” she said.

Significant change in many workplaces had the potential to increase pressure on employees’ time, workloads, role clarity, skills and relationships, all of which can contribute to ongoing stress.

The report found that psychosocial hazard claims including excessive workloads, low job control, and isolated or hybrid work have been rising, with more than one in three employers reporting increased job-demand or conflict issues in their workplaces in 2024.

Contrary to reports that AI would replace junior positions, 41 per cent of organisations surveyed reported an increase in entry-level roles because of AI, compared with 19 per cent reporting a decline.

“Despite recent talk about the negative impact of AI on the employment prospects of graduates and school-leavers, the survey data suggest the future trajectory of the Australian jobs market is nuanced and uncertain,” Ms McCann-Bartlett said.

Ninety three per cent of employers said they were using AI, but only 68 per cent had formal policies or guidelines to manage it.

The gap is widest among small businesses, where 56 per cent report having policies in place, compared with 90 per cent of public sector organisations.

Three-quarters of employers are training staff on how to use AI at work, most often led or supported by HR teams, and more than four in five have consulted employees about AI implementation.

“Adopting AI without clear guardrails risks undermining employee and customer trust and organisational performance,” Ms McCann-Bartlett said.

“Strong governance and training need to go hand in hand to ensure AI is introduced ethically and effectively in Australian workplaces.”